Gazelle Information Technologies

Supply chain management issues in the semiconductor industry

Semiconductor markets were solid and predictable a few years ago. In a fast-changing environment, the industry needs help to bring in more money, make more money, create new products that meet customer needs, and run operations worldwide.

 

Delay in the transmission of data

Power, efficiency, and task-based wafer-die binning can produce different co-products from the same wafer. Since data is kept in many systems, different jobs with different planning criteria cause data latency.

 

Specific requirements of the target audience

Even within the same product, there can be differences in the materials used, where they are made, how many are sent, and how well they are made. Since they are all based on each client’s unique requirements, the requirements are pretty diverse.

 

Front-end (FE) output requires additional production procedures

For FE outputs like wafers and a blended model to be made, they must go through other production steps like assembly and testing. The ensuing supply chain complexity makes it harder to prepare effectively for capacity needs.

 

FE cycle times are significantly faster than BE cycle times

While a FE cycle may take up to eight weeks to complete, a BE cycle may take as little as two to four weeks. This necessitates extra preparation because it delays inventory at various production stages.

 

Limited supply chain visibility and planning

Supply chain dominance is difficult to achieve because of the abundance of direct and indirect resources required for production and the disconnection between in-house and outsourced production sites and distribution centers. This can lead to more inventory accumulation and better customer service.